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But that what is owed, lol the principal + Interest, hence, you know, the only reason the person was able to secure the loan in the first place?....... Also I don't know of any traditional bank that has been in the student loan business for nearly 20 years, they don't want to touch that debt with a 10 foot pole
Why would colleges ever complain about debt forgiveness,? it essentially would be a bail out for them and doubles down on the waste that has persisted across campuses for decades, part of the reason their balance sheets have grown so much is due to all the excess cash flow created by these loans.
Another truth is debt forgiveness is not as popular as people like to think, for 1, while it is extremely popular with Genz and I'll even argue the population at large, the delta significantly decreases when you isolate for registered voters, to damn near 50/50- then you have to account for where they live (swing states ect)
Look, I am not even saying a forgiveness plan is not a good idea. I am all for a comprehensive plan that actually reforms and curbs the issues that exist in the first place. A student loan really is taking out money against yourself, ie..betting on yourself. You are essentially saying this degree/certificate/advanced degree will be worth far more to me in the long term than the money I am taking out against, it, don't think it will? Don't take it out, think it will and doesn't? Understand the consequences.
I also don't like income caps, it penalizes students who did gamble and succeeded. Make it income agnostic, if you think someone who makes 200K, but owes 200k in student loans couldn't use relief I don't know what to tell you.
A potential solution should:
1.) Remove income caps
2.) Ensure smaller loans in the future, both in size and rate, schools should be on the hook for subsidizing
3.) Incentivize certain thresholds for partial forgiveness prior to the loan being secured, similar to if you work for certain non-profits, lets say you get married, don't commit a crime, purchase a home ect.....
4.) Make it state based on where you went to college, you went to school in NY? If NY passes you are good
5.) Make some requirements on degree (I really think this is a red herring used by republicans to make voters in Arkansas think they would be paying for NYers women's studies degrees, but I do think it makes sense to put some requirements on degree attained in a very broad sense)
6.) Require schools to meet certain thresholds on job placement and salary of graduates in order to have any student receiving government loans/grants
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